Inventory Management and Financial Performance of Small Scale Apicultural Enterprises in Cameroon: The Case of Oku Honey Cooperative Society Limited

Abstract

This study examines inventory management and financial performance of Small Scale Apicultural Enterprises in Cameroon, the case of Oku Honey Cooperative Society Limited (OHCSL). The independent variable (Inventory management) proxy by raw materials inventory, work-in-progress inventory, finished products inventory, and packaging material inventory was regressed against dependent variable (financial performance) proxy by gross profit margin. Data used in this study cover the period 1988-2017. The primary data was collected using interviews, structured and semi- structured questionnaires administered to the management staff of the organization. Using magazines, internship reports and annual reports of the enterprise, secondary data was collected. Using multiple regression analysis, the study established that a positive relationship exist between the independent (inventory management) and dependent variables (financial performance) at OHCSL. However, it was uncovered that holding raw material inventory contributed minimal on the financial performance of OHCSL. This was attributed to the fact that honey is processed within 24hours post harvest and hence the cooperative avoids holding raw material inventory. Consequently, the study recommended improvement in inventory management practices including improving staff capacity at the cooperative.